Credit Repair Tips for Home Buyers

Enhance your credit score with these tips

Credit Repair Tips for Home BuyersIt is never too early or too late to improve your credit. Although improving your credit score will increase your chances of mortgage loan approval, it may also affect the interest rate offered.

Some people may tell you that credit repair is impossible, but this isn’t the case. You can do proven things that help you improve your credit score and get back on track financially.

Get current with payments

Making timely payments is one of the best ways to improve your credit score. Getting current with all of your creditors will help improve your credit score over time. Stay vigilant about making your payments on time in the future – this is the best way to keep your credit score healthy!

Watch your credit score

It is essential to keep in mind that your credit score is not the only factor lenders consider when approving a loan. However, having a good credit score will undoubtedly improve your chances of being approved for a mortgage.

If you are currently in the market for a home, it is good to check your credit score and make sure that it is as high as possible. You can get your credit score for free from freecreditreport.com and there are several other sources, including Credit Karma and Mint that you can look into.

By keeping an eye on your credit score, you can assist you when are ready to buy a home. In addition, having a solid credit history can help you with your interest rate on your mortgage and save you money in the long run.

Consider a credit repair coach

Credit repair coaches are financial professionals who help people improve their credit scores. A good credit repair coach will work with you to identify the factors impacting your score and develop a plan to improve it.

They can help you dispute inaccuracies on your credit report, negotiate with creditors to remove negative items and develop a budget and payment plan to get your debts under control.

If you’re struggling to improve your credit score on your own, consider working with a credit repair coach. They can provide expert guidance and support to help you make the changes necessary to boost your score.

Consult with your mortgage lender

If you are ready to buy a home, your first task should be to talk to your mortgage loan officer. A mortgage sales manager and loan officer like Ed Mermolia has years of experience working with home buyers. Your mortgage loan officer can help you calculate how much house you can realistically afford. Knowing your home price limit is crucial because it will help you narrow your search to homes that fit your budget. There’s nothing worse than falling in love with a home that’s out of your price range.

Even if you’re not ready to buy a home just yet, it’s still a good idea to consult with a mortgage loan officer. They can help you establish a timeline and budget for purchasing a home and help you make the process as smooth as possible.

Bonus content, 6 factors lenders look at when making credit decisions.

  • Income: Lenders want to see an income level that can manage a monthly mortgage payment on top of all other bills. Lenders have policies that set limits on what percentage of your income can go towards housing.
  • Savings: Sizable savings are a good indicator that you will continue to make payments even if something unexpected occurs—such as job loss, injury, or more.
  • Debt-to-income: Debt-to-income (DTI) ratio shows how much of your income is going to pay off debts. A high DTI implies the individual lives beyond their means and won’t be able to handle the additional debt of a mortgage. Applicants may want to pay off some of their debts to lower their DTI before applying for a loan.
  • Down payment: The larger the down payment, the less risk is taken on by the lender. Therefore, a sizable down payment of 10 percent or higher can make an applicant look more appealing.
  • Employment history: Lenders prefer to see longer periods of employment to show the stability of the borrower’s income. Prospective homebuyers are often told to hold off switching jobs until after they purchase a home.
  • Credit history: Every time you miss or make a late payment, it can potentially be recorded on your credit report. Lenders prefer to deal with borrowers with positive payment history. They may deny applicants who have a pattern of missing bills.

Ready to get started? Contact me today.

Sales Manager / Loan Officer

As a mortgage sales manager and loan officer, I've assisted more than a thousand borrowers with their financing. Contact me today to let me help you with your mortgage financing.

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3517 S. 43rd St.
Greenfield, WI 53220

Banker NMLS: #271768
(414) 416-0530